2006 Budget Explanations

MEMO

TO: Town of South Bruce Peninsula Council
FROM: Patrick J. Stock, Manager of Financial Services
SUBJECT: 2006 Final Budget
DATE: March 28, 2006
________________________________________________________________________

I would like to firstly thank Council and Staff for their input into the 2006 Budget over
the past two months. With the scheduling of the meetings being done in early January
and posted on the web site, the process was very open and transparent. I also believe that
with sixteen plus hours being devoted to the process, each of us has a better
understanding of the proposed revenues and expenditures.

I will review each area of the budget beginning with Revenues and concluding with
Expenditures. I will only be highlighting significant items or items that have a major
impact or are a significant change from the previous year.

REVENUES
General Government
The tax revenue has increased by 2.49%. This equals the assessment growth realized
from new construction, etc. in 2005. The actual tax rate for Residential purposes for the
Town has decreased by 13.91% from $628.03 in 2005 to $540.65 per $100,000 of
assessed value. All actual tax increases or decreases will depend on each property
owner's individual revised assessment.
The Province of Ontario's Ontario Municipal Performance Fund Grant has increased
from $1,306,760.00 in 2005 to $1,380,764.00 in 2006.
The Town received $78,874.93 from the Federal Government as the "Federal Gas Tax"
allocation in 2005 and will receive the same amount in 2006. Last year's allocation was
placed in a Reserve. The allocation for 2005 and 2006 will be spent on an approved
Roads project in 2006.
The Town anticipates receiving approximately $600,000.00 from the sale of the Wiarton
Public and High Schools in 2006. This revenue is offset by property purchases under
General Government.
The Surplus that was brought forward from the 2005 Revenue Fund was $202,823.89.

Fire Department ­ Station # 40
The Province of Ontario have not committed to the continuance of the unconditional one-
time funding of $50,000.00 for Fire Department purposes that we received in 2005.

Building Department
Building Permit revenue has increased due to a recently passed By Law of Council that
was done in accordance with Bill 124 of the Province of Ontario. Included in this
revenue is anticipated new commercial development within the Town.

2.
Paid Parking
Due to the infancy of Paid Parking we are still guessing at the projected revenue.
We have projected a revenue increase of $25,000.00 in 2006 vs. 2005 due to the inclusion
of additional parking lots in Sauble Beach and Wiarton.

Public Works
Council in 2005 placed $1,000,000.00 in a Reserve for future Capital Works
requirements. These monies are being taken into revenue in 2006 and will be further
explained under expenditures. The Town has received $343,802.00 from the Province of
Ontario in the form of an "Unconditional Grant" as long as we utilize the proceeds for
Roads or Bridges in 2006.

Wiarton-Keppel Airport
The increase in Revenue is due to an increase in anticipated fuel sales, municipal
contribution of $30,000.00 that is shared by the two municipalities and an increased
surplus of approximately $15,000.00 in 2005 that is carried forward to 2006.

Wiarton Sewer and Water & Amabel Water
The Town has not increased the sewer and water rates for 2006.

Garbage Collection & Disposal
It is anticipated that the Albemarle Landfill Site will be logged in 2006 which will
generate approximately $40,000.00.

Parks and Information Centre
Monies are being transferred from Reserves in 2006 to help offset Parks expenditures that
will be further explained under expenditures. The total of the Paid Parking surplus from
2005 is being used to offset washroom expenditures in 2006.

Mid-Winter Festival
Inventory sales of $4,000.00 and a Reserve Transfer of $8,000.00 (2005 advertising
revenue & Provincial grant) have been utilized to offset expenditures for 2006.

Planning
Monies were reserved in 2005 to assist in the anticipated new Official Plan and Zoning
By-Law expenditures that are expected to be incurred in 2006.
3.

EXPENDITURES

All employee remuneration has increased by a negotiated rate of 3.00%. Fringe benefits
have increased in accordance with Federal and Provincial statutory requirements (CPP,
EI, and OMERS) plus negotiated Fringe Benefit Plans.

Council
Council remuneration has increased by the CPI Index for 2005 being 2.2%.

General Administration
Full Time salaries have increased by more than the previously mentioned 3.0% due to the
anticipated retirement of the Town's CAO and the need for the replacement to be on the
job for a minimum of approximately two months prior to the retirement.
Council in 2005 authorized approximately $100,000.00 to be expended in 2006 for a
Regional Environmental Study (Hepworth & Sauble Sewer and Water).
Council has allocated $321,898.24 towards the Working Capital Reserve in 2006. These
monies will have to be allocated by separate resolution towards three separate ongoing
and unknown dollar commitments at this time in 2006.
As previously mentioned, in 2006 we have budgeted for the final purchase of the High
School and the complete purchase of the Public School.
Computer Upgrade has increased by $5,000.00 over the normal allocation due to an
anticipated new computer program for the Clerk's Department. It will assist with the
completion of the Council agenda and related generated information. A report will be
presented to Council on this anticipated expenditure in the near future.

Elections
The Town budgets $15,000.00 annually for the election in order that a spike in
expenditures does not occur every three years. The anticipated expenditure of
$45,000.00 was budgeted for in 2004, 2005 and 2006. Revenues in 2006 show a Reserve
Contribution of $30,000.00.

Police Protection
The OPP contract has increased by the amount of their anticipated negotiated settlement
with the Province. This increase will be passed on to the Town.

Building Inspection
Due to the previously mentioned increase in permit revenues in accordance with Bill 124,
the Town has budgeted the department surplus less overhead costs towards their targeted
reserve of $500,000.00. It is also anticipated that a new pick-up will be purchased for the
Chief Building Official in 2006.

4.
Paid Parking
This budget is preliminary and will require a further amendment when the lease or
purchase costs for Ticket Dispensers are fully known. This is the only major change
from 2005.

Fire Expenditures (Wiarton)
The Town of South Bruce Peninsula share of this department has decreased by $7,000.00
in 2006.

Public Works
The general day to day maintenance costs for the Town roads and ancillary items have
changed very little from the 2005 budget. In 2005 Council through their Public Works
Manager received and reviewed a new Roads Need Study. This study prioritizes the
roads needs in our Town. With this document in hand Council have allocated
$1,598,802.00 towards Roads Capital Projects in 2006. As mentioned earlier in
Revenues, this is where the $1,000,000.00 transfer from Reserves and the Province of
Ontario grant of $343,802.00 have been allocated. Council over the next few months will
make a decision in consultation with this study and their Public Works Manager on where
these monies are to be allocated.

Street Lighting
A combination of Town Reserves and BIA loan from the Town that is to be repaid over
the next number of years will cover the capital expenditure of $168,725.23.

Wiarton-Keppel Airport
The major increase in this budget is for capital purposes. The main deficiencies are the
runway and terminal building. The Board will determine the required needs within the
next few months prior to prime construction season.

Garbage Disposal (Landfill Site)
The increase of approximately $50,000.00 at the Landfill Site is in Special Projects. This
expenditure will encompass sand removal and closure requirements.

Recycling
The expenditure increase is in the allocation of capital for fencing around a recycling
depot in Sauble and the Lugger Box Rental expenditure that includes the cardboard
recycling depots in various locations.

Parks
The major change is in Capital that includes improvements to the washroom facilities in
Sauble Beach and Bluewater Park in Wiarton plus the purchase of a new lawn mower.

5.

Wiarton Information Centre and Campground
Council has allocated $5,000.00 towards a Reserve in 2006 for future capital items.
Mid-Winter Festival
Expenditures have increased in relation to the increased revenues mentioned earlier. In
2005 Council committed tax dollars totaling $16,245.00 towards the Sauble and Wiarton
Winter Festivals and in 2006 this commitment was increased to $21,575.00.

Planning & Economic Development
Council is expecting that their new Official Plan and Zoning By-Law will be ready for
review in 2006. They have allocated $30,000.00 towards this initiative. Previously in
Revenues it was mentioned that $20,000.00 was brought forward from the 2005 budget to
be used towards this expenditure. The $10,000.00 allocated towards the Business
Enterprise Centre may change as Council has authorized their CAO to discuss changes
with officials of this group in order to effect perceived deficiencies. Council has
allocated $20,000.00 towards yet unnamed Special Projects for Economic Development.
The Economic Development Officer must report back to Council in order for these
monies to be specifically allocated towards a project. The Council has also allocated
approximately $1,500.00 towards Website improvements specifically for Economic
Development.